Has DEI DIE-d?
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Article Type
Sustainability Soapbox
Topic
Responsible Investing
Published
April 25, 2025
Read time
5 mins
Author
Miranda Beacham
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March 18th looked like a bleak day for Diversity, Equity and Inclusion. Donald Trump signed an executive order to remove DEI from the foreign service and overturned one signed by Lyndon B Johnson in 1965 during the civil rights movement to create equal opportunities in contractors working for the US Government. The aim of all of this is: “restoring the values of individual dignity, hard work and excellence”.

 

His particular gripe focused on opposing “ideological agendas”. This should not surprise anyone given the rhetoric that had been coming out of the culture wars over the past few years. 

 

Although it would be legally problematic to outlaw diversity measures in private companies, the large incentive of government contracts has been waved, and a number of organisations have rolled back their strategies and disclosure in this area. The number of DEI Officers has drastically dwindled.

 

This trend has also made its way across the Atlantic where we have seen the likes of Glaxo removing DEI targets from executive pay as a precautionary measure and the UK's Financial Conduct Authority coming under pressure from corporates to remove the targets proposed for the finance industry. 

 

But are things as bleak as they first appear?

Perhaps not. We engage with companies across the globe on a number of environmental, social and governance issues, and the companies we have spoken to this year have largely been talking about a rephrasing of DEI. Having spent a lot of time and resources in creating more inclusive cultures, these companies are now realising the benefits of equal opportunities creating a workforce that is reflective of their clients, suppliers and geography.

 

Most have done this quietly, however, there have been some very vocal defenders of DEI from unexpected places. In September 2024, Jamie Dimon – Chairman and CEO of JP Morgan - was speaking at the Council of Institutional Investors conference in New York where he proclaimed, “It’s good for business; it’s morally right; we’re quite good at it; we’re successful”. The only capitulation to the political landscape they find themselves in is to rebrand Diversity, Equity and Inclusion to Diversity, Opportunity and Inclusion in March this year.

 

In January 2025 Costco came under attack at the AGM for their diversity initiatives being unlawful discrimination. The company presented a robust defence of their policies citing the fact that it is good for business as customers want to see themselves reflected in the organisation, it attracts the best talent and spurs innovation. In short, the “commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.”

 

So all hope is not lost. There will be companies that take this opportunity to scrap these strategies, but these are the very same companies that have only been paying lip-service to the notion of inclusion, so little is actually lost. The rest, who have realised that having equal opportunities for all, along with an inclusive culture makes good business sense. The talent pool is wider and deeper, better decisions will be made, and the organisations become more attractive to a wider audience of potential customers.

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Author

Miranda Beacham
Head of UK Responsible Investment

Miranda Beacham is Head of Responsible Investment at AAM UK.  Her role involves overseeing the environmental, social and governance research process for ethical and sustainable funds as well as overseeing the stewardship activities, supporting the ESG integration processes and further research in ESG issues for investments across Aegon AM UK.

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